On June 14, 2025, Vietnam’s National Assembly passed the Law on Digital Technology Industry, a landmark legislation that officially legalizes crypto assets and establishes a clear regulatory framework for digital assets. This law will take effect on January 1, 2026, marking a significant shift in Vietnam’s approach to the digital economy.
Key Provisions of the Law
- Digital Asset Classification
The law divides digital assets into two categories:- Crypto assets: encrypted digital tokens used for value transfer and ownership validation, such as Bitcoin and Ethereum.
- Virtual assets: digital tools used for exchange or investment but not classified as financial instruments.
Importantly, the law excludes securities, digital fiat currencies (like tokenized Vietnamese Dong), and other financial products from these definitions.
- Regulatory Framework and Government Role
The government is tasked with creating detailed regulations covering licensing, classification, business conditions, and supervision related to digital assets. This framework aims to bring clarity and legal certainty to a previously ambiguous market. - Cybersecurity and Anti-Money Laundering (AML)
The law mandates compliance with international standards for cybersecurity and AML, addressing concerns raised by the Financial Action Task Force (FATF), which had placed Vietnam on its “gray list” due to insufficient safeguards. These measures aim to enhance transparency and reduce illicit financial activities.
Broader Digital Ambitions
Beyond crypto regulation, the law signals Vietnam’s ambition to become a regional leader in digital technology. It introduces incentives such as tax breaks, favorable land-use policies, and support for research and development, particularly in emerging fields like artificial intelligence, semiconductors, and blockchain technology. Local governments are encouraged to support workforce development through training and subsidies, fostering a robust digital ecosystem.
Why This Matters
Vietnam ranks among the countries with the highest crypto adoption rates globally but has lacked a clear legal framework until now. This law not only legitimizes crypto assets but also aligns Vietnam with global regulatory standards, potentially attracting foreign investment and boosting innovation. It also responds to international pressure to improve AML and counter-terrorism financing measures.
What to Expect Next
- Implementation of detailed regulations by relevant government bodies.
- Increased legal clarity for businesses and investors in the digital asset space.
- Growth in Vietnam’s digital economy, supported by incentives and infrastructure development.
- Enhanced international cooperation and compliance with global financial standards.
Key Takeaways
- Vietnam legalizes crypto assets and virtual assets under a new law effective January 1, 2026.
- The law excludes securities and digital fiat currencies from its scope.
- It mandates cybersecurity and AML measures in line with international standards.
- The government will establish detailed regulations for licensing and supervision.
- The law supports Vietnam’s goal to become a digital technology hub with incentives for innovation.
FAQs
Q: When does the new digital asset law take effect?
- A: January 1, 2026.
Q: What types of digital assets are recognized?
- A: Crypto assets and virtual assets, excluding securities and digital fiat currencies.
Q: How does the law address money laundering concerns?
- A: It requires compliance with international AML and counter-terrorism financing standards.
Q: What incentives does Vietnam offer to tech companies?
- A: Tax breaks, land-use benefits, and R&D support, especially in AI and semiconductors.
Q: Why did Vietnam pass this law now?
- A: To regulate a fast-growing crypto market, address FATF concerns, and boost its digital economy.
Vietnam’s new law marks a turning point, positioning the country as a serious player in the global digital asset and technology landscape.
